Power Sector Reforms and Technical Performance: Good News from an Instrumental Variable Analysis

Over the past three decades, various power sector reforms have overhauled the governance of electricity generation, transmission, and distribution in almost a hundred countries. Have these reforms produced benefits? Using instrumental variables, we improve upon earlier studies and demonstrate that power sector reforms enacted between 1982 and 2008 have both had large positive effects on the availability of generation capacity and reduced transmission and distribution losses. We also show that the positive effects on generation capacity are pronounced in developing countries and that hybrid reforms falling short of privatization and free competition are effective in improving generation capacity in particular. Overall, the results show that these reforms are an effective tool to remove an important constraint on economic growth.     

A dilemma for the welfare state: managing the cost for shorter working hours, 1919–2002

The purpose of this article is to study how the Swedish welfare state has managed the cost of shorter working hours. During the twentieth century, several official reports were published in order to produce knowledge about this issue and to deal with the cost for the reform. This article aims to examine the arguments and beliefs of the political economy of the welfare state that emerge from these formulations. An examination of shorter working hours as social policy sheds new light on the relationship between the welfare state and capital, in addition to limits for social policy imposed by the economic system. A reduction of work hours has never been justified as a reform that simply gives more time for leisure and less time for work, but has been assigned a cost that was necessary to manage. The reform was considered possible because it was interpreted as helping to reproduce labor power or capitalism as a whole. It was thought impossible and undesirable when considered to be a threat to this reproduction. This article shows the process of managing the cost for shorter working hours in Sweden and how arguments fundamentally changed over time, although the basic premises remained the same.     

Public Administration in Libya: Continuity and Change

ABSTRACT

Libyan public administration has been shaped by Libya’s history, ideology, and economy. It has been negatively affected by the political changes occurring since independence in 1951, particularly Gaddaf’s distinctive initiatives, and by upheavals in the post-Gaddafi transition. Libya’s rentier economy has had its impact on public administration, particularly through its promotion of widespread public corruption. This article analyzes the history of Libya’s politico-administration system before describing the current administrative arrangement, identifying the essential factors that have given rise to those arrangements, and analyzing the contemporary characteristics of public administration that constitute the key future challenges Libya faces.     

Poor choice? Smith,Hayek and the moral economy of food consumption

This paper explores the moral economy of food in the United Kingdom via discourses on food bank usage and obesity. It argues that both of these markers of malnutrition were interpreted under the Conservative-led governments of David Cameron (2010–2016) as failings of personal responsibility and identified primarily with the working class, advancing the assumption that poor people make poor choices. Based on a critique of this account, our wider contribution is two-fold. First, we identify the Hayekian lineage of the discourse of personal responsibility, highlighting its utility in facilitating a form of neoliberal market consent through its insistence on self-reliance. Second, we stake out an alternative to this conceptualization through a discussion of Adam Smith’s notion of self-command, which we call interpersonal responsibility.     

Fiscal consolidation under electoral risk

The European debt crisis has uncovered serious tension between democratic politics and market pressure in contemporary democracies. This tension arises when governments implement unpopular fiscal consolidation packages in order to raise their macroeconomic credibility among financial investors. Nonetheless, the dominant view in current research is that governments should not find it difficult to balance demands from voters and investors because the economic and political costs of fiscal consolidations are low. This would leave governments with sufficient room to promote fiscal consolidation according to their ideological agenda. This article re‐examines this proposition by studying how the risk of governments to be replaced in office affects the probability and timing of fiscal consolidation policies. The results show that governments associate significant electoral risk with consolidations because electorally vulnerable governments strategically avoid consolidations towards the end of the legislative term in order to minimise electoral punishment. Specifically, the predicted probability of consolidation decreases from 40 per cent after an election to 13 per cent towards the end of the term when the government's margin of victory is small. When the electoral margin is large, the probability of consolidation is roughly stable at around 35 per cent. Electoral concerns are the most important political determinant of consolidations, leaving only a minor role for ideological concerns. Governments, hence, find it more difficult to reconcile political and economic pressures on fiscal policy than previous, influential research implies. The results suggest that existing studies under‐estimate the electoral risk associated with consolidations because they ignore the strategic behaviour that is established in this analysis.     

A Green Post-capitalist Alternative to a System of Accumulation: A Bioregional Economy*

This paper explores capital accumulation as the engine of the capitalist mode of production. Accumulation drives the socio-economic damage caused by capitalism, as well as the environmental crises of land use, climate change and resource depletion. It may not be possible to address these problems within a reformed capitalism. Rather, such a goal can only be met within “a practical, workable post-capitalist and post-accumulative ecological economy, an economy by the people, for the people, that is geared to production for need, not for profit” [Smith, R. (2010). “Beyond Growth or Beyond Capitalism?” Real-World Economics Review 53: 28–42., 42]. This paper sets out a post-capitalist alternative, drawing from green economics and Marxian economics, that is, applied at a local and regional level.     

The EU’s Emissions Trading System,Part 2: A Political Economy Critique

This is part 2 of a paper that revisits the European Union’s Emissions Trading System (EU ETS) in an attempt to take stock of how the system has worked and evaluate it from the standpoint of radical political economy. In part 1 of the paper the basic design, the workings and the outcomes of the scheme were discussed with critical perceptiveness. In particular, the paper revealed the unsatisfactory results of the scheme (even in its own proclaimed aims), including allowances surplus, allowance trades for pure financial profit, low and volatile prices of allowances, windfall profits, extensive use of Kyoto project-based credits, and several malfunctions and instances of fraud. These findings set the ground for part 2 of the paper, which offers a critical assessment of ETS, proclaimed by mainstream analyses as the major vehicle for the transition to a low-carbon economy. In particular, the complications and instabilities created by the increasing financialization of the carbon market are exposed. Moreover, the ineffectiveness of the ETS as a catalyst for investments in clean energy technologies, especially in times of economic crisis, is substantiated. Since the deep embeddedness of the scheme in capitalism risks climate sustainability, the analysis concludes that a more radical transformation of society with an eco-socialist orientation is needed.     

Determinants of Pro‐Fracking Measure Adoption by New York Southern Tier Municipalities

New York municipalities passed more than 60 measures promoting high‐volume hydraulic fracturing (HVHF), 2008–12. These policies and resolutions signaled to state officials that municipalities desired HVHF's promised economic benefits and were anxious for an end to the state's HVHF moratorium. They also may be evidence of municipalities proactively preparing for a drilling boom. Why did some jurisdictions adopt these measures while others did not? While scholarship suggests that policy adoption is facilitated when jurisdictions and citizens possess more resources, capacity appears to have a negative or negligible impact on pro‐HVHF action. Such action appears more likely when local actors anticipate HVHF's potential gains but have not previously experienced substantial drilling, perceive that the industry could be viable locally, and can access relevant policy examples. Some lessons from conventional adoption scholarship may not apply when policies are symbolic, advocacy may be elite‐driven, and mimicry is an important diffusion mechanism.     

A Neoliberal Rentier System: New Challenges and Past Economic Trajectories in Iraq

The Islamic State’s conquest of swathes of Iraqi territory, combined with falling oil prices, revealed the fault lines of a model of economic development that made the country extremely vulnerable to the events of 2014. Over the last 13 years, the consolidation of the rentier economy in parallel to the promotion of a neoliberal model – a neoliberal rentier system – has not initiated a process of sustainable economic development. The main factors explaining this missed opportunity can be found in the tensions that exist between the two models and, in particular, between the relative roles of the state and the private sector as drivers of economic development.